Lawrence Yun is an idiot.
Now he wants to get housing demand flowing again (while stimulating realtor commissions of course) not by the traditional means of lowering prices, but by bribing buyers with a tax credit.
Here's a suggestion Lawrence - IT'S CALLED LOWER THE DAMN PRICES.
You want demand (and realtor commissions) to return? You might want to check out the relationship between demand and price. They taught you that in your Econ 101 class at Purdue, right? We know you read HP, so please brush up on your econ 101 here that Purdue must have failed to teach you. Glad we could help.
Folks, any sucker dumb enough to take a $5,000 government bribe to buy a depreciating debt-trap would be an even bigger idiot than Lawrence Yun. And that's saying something.
Oh, Yun says this would ONLY cost the US taxpayer $40 billion. What a deal!
Go ahead HP'ers - you take it from here.
What is most needed in the current point in the housing cycle is to get the home sales rolling.
There is plentiful pent-up demand. The difficult part is getting this demand unleashed into the marketplace, due the pervasive consumer pessimism related the housing market.
What is critically needed at this important point in the housing cycle is a measure to assuredly and quickly raise home buying activity. This can be accomplished by providing a homebuyer tax-credit. A nationwide $5,000 tax credit (the same amount currently in existence for homebuyers in Washington, D.C.) will cost the federal government $40 billion.